Zalando almost doubled its adjusted EBIT in its second quarter as it grew 87% to €144.8m year-on-year.
The German online fashion giant attributed the rise to more focused marketing, better order economics and bigger average basket sizes which led to lower fulfillment costs.
Chief financial officer Sandra Dembeck said the success puts Zalando “in pole position to shift its focus more towards investment and future growth initiatives”.
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Despite the strong numbers, gross merchandise volume fell by 1.8% to €3.7bn. in the period while revenue was also down, dropping by 2.5% to €2.6bn.
The company also narrowed its full-year outlook for 2023, with operating profit now expected between €300-350m, instead of €280-350m previously.
Zalando added that its partners are continuing to grow their businesses on its platform with more choosing to use its fulfillment service offering.
Last month, the retailer launched its new artificial-intelligence tool, allowing shoppers in Germany, Austria and Switzerland to receive size recommendations for selected garments, based on their unique body measurements.
The new offering allows users to take two pictures of themselves in tight clothing for Zalando to predict a person’s body measurements and help them find the right fit for their clothing purchases.
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